Award Acceptance and Account Set-Up

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Award Acceptance and Account Set-Up

• Sponsored Programs at Penn

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Advance Accounts

• What is an Advance Account?
• Use when high probability of award
• Allows you to put charges on proper account
• Avoid journal entries and payroll reallocations
• Use with pre-award costs under expanded
  authorities
• Easy to request
• Link to Advance Account Request form located on
  ORS home page
• http//www.upenn.edu/researchservices/pdfs/advance
  .pdf
• SOM - Advance Accounts are approved and set up by
  ORSS
• All other schools - forward request to ORS

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Advance Accounts (cont.)

• Risks
• Award may not materialize
• Start date may be delayed
• Not all sponsors allow Pre-award expenditures
• Establish follow up routine
• Has award materialized?
• Is something holding it up?
• 3 month limit on advance accounts

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What is a Notice of Award (NOA)?

• An official written communication from a sponsor
  providing financial support for a proposed
  sponsored project

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What is Contained in a Notice of Award

• General Special TC
• Use of Animals/Human Subjects
• Use of Interest Income
• Use of Program Income
• Reporting requirements
• Programmatic
• Financial
• Property
• Invention

• PI Name
• Dates of Performance
• Current budget period
• Total project period
• Dollars
• Direct, FA
• Current, project total
• Cost Sharing
• Contact information

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Account Set-Up
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Account Set-Up
Notice of Award (NOA) Received
Status Changed From Proposal To Award
Fund Attributes Fund Parents Special
Budgets Account Segments Assigned in PennERA
Sent to GL
Fund Legacy Number Created in BEN Financials
Sent to PennERA
AIS is Generated
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Funds and Accounts

• New Funds are created for each year of the award
  when carryover of money from one year to the next
  must be approved by the Sponsor
• New funds are also required when the FA changes
  from one segment to another
• Subaccounts are to be requested on the subaccount
  worksheet

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Receiving the Award and the Account
InformationSheet (AIS)
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Reviewing the AIS and the NOGA

• Ensure Account End Dates Accurate (budget end or
  project end?)
• Ensure Award on AIS matches Award on NOGA
• Ensure FDP and/or SNAP
• Ensure accuracy of FA rate
• Ensure proper PI name and Org
• If the AIS is for a continuation year, always
  check for budget periods funded with prior
  unobligated funds.

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Review the Award

• AIS is not substitute for award
• Review terms and conditions of award
• Sponsor guidelines
• Restrictions

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Subcontract Process

• Two Scenarios
• Notice of Award arrives with subcontract included
• ORS contacts BA to verify subcontract information
• BA notifies ORS subcontract needed/requested
• Sponsor approval may be required
• BA/PI prepares subcontract request form
• http//www.upenn.edu/researchservices/docs/SUBCONT
  RACTREV.doc
• ORS completes subrecipient monitoring, prepares
  subcontract sends to subrecipient
• Subrecipient signs returns
• ORS sends to BA
• Cover letter
• Signed agreement
• Guidelines for BEN Financials Purchase Orders
  Sponsored Program Subcontracts (BEN MEMO)
• BA sets up Purchase Order

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Subrecipient Monitoring

• A-133 report or audited financial statements
  required annually
• Current FA rate agreement
• Risk Assessment results indicate appropriate
  subcontract terms and conditions

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Subcontract Process (cont.)

• PI BA manage subrecipient invoices
• PI BA manage subrecipient activities
• PI must determine if work is satisfactory and
  approve payment
• Establish strong lines of communication with
  contact at other institution

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Establishing Subcontract in BEN Financials

• Department verifies Supplier (Subcontractee)
  information is in BEN Buys
• Supplier Name Site
• Confirm available funds that subcontract OBJCs
  have been budgeted correctly
• OBJC 5332 (up to 25,000 charged FA)
• OBJC 5333 (over 25,000 no FA charged)

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Establishing Subcontract in BEN Financials (cont.)

• Generate a Purchase Order (PO)
• Executing a requisition in BEN Buys
• Provide Sole Source Justification
• An approved requisition will generate a PO
• PO approval follows normal PO hierarchy
• Manage PO
• All subcontract payments to supplier must be
  approved by responsible PO Manager
• On-line receipts required for all subcontract
  POs
• Use Receipt Required field for POs less than
  5,000

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Reference Documents

• Guidelines for BEN Financials Purchase Orders
  Sponsored Program Subcontracts
• http//www.upenn.edu/researchservices
• Requisitioner User Guide PO Manager User Guide
• http//www.finance.upenn.edu/ftd/documentation
• Requisitioner User Guide
• Creating a Requisition
• Entering Receipts
• PO Manager User Guide
• Managing the PO
• Viewing Invoices
• Entering Receipts

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The FDPFederal Demonstration Partnership
is a cooperative initiative among federal
agencies and institutional recipients of federal
funds. It was established to increase research
productivity by streamlining the administrative
process and minimizing the administrative burden
on principal investigators while maintaining
effective stewardship of federal funds. 
Penn is a participating institution
Many of the recommendations of the FDP have been
included in expanded authorities.
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Carryover Authority SNAP

• Carryover Authority
• Generally Rs, Ks and P01s, but always check
  the Notice of Grant Award.
• SNAP
• Streamlined Non-competing Award Process
• Generally Rs, Ks
• A grant must have carryover authority if it is
  under SNAP

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Importance of Expanded Authorities/FDP

• Allows some administrative privileges authorized
  by A-110
• Automatic carryover of unobligated balances
  across budget periods and competitive segments
  (except when noted in the Award)
• Up to one year no cost extension if requested 10
  days prior to end of budget period (to complete
  project not spend the )

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Importance of Expanded Authorities/FDP

• Waive most cost related and administrative prior
  approvals except
• Change in scope or objective of the project
• Change in key personnel
• Requests for additional funding
• Other exceptions as noted
• Allows for 90 day Pre-award startup costs

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Remember!

• At Penn, grants with automatic carryover retain
  same fund for the entire segment.
• An exception to this rule is subcontracts.
• All grants without automatic carryover receive a
  new fund every new budget period.

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Basic Terms to Know

• Revenue Recognition
• PBIL and PBUD
• FSRD and FSRI
• Operating Budget
• Object Code 1220 Receivable

• Adjustment Period
• MTDC
• Encumbrance/Unliquidated Obligation
• Unobligated Balance
• Letter of Credit

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Revenue Recognition

• Revenue
• Our entitlement to be reimbursed by the sponsor
  for the allowable expenditures of the grant
• An equal of Revenue is recognized for every
  of allowable expense in object code 4600 Grant
  Revenue
• Unallowable expenses and expenses above the award
  amount do not recognize revenue
• Revenue does not necessarily reflect the cash
  received from the sponsor

WHATS WRONG WITH CHARGING AN INDIRECT COST
DIRECTLY TO THE GRANT ?
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Other Potential Sources of Revenue on a Grant
Fund

• University Funded Cost Sharing - Object Code 4822
• TIF (Interest) Income - Object Code 4780
• Program Income - Object Code 4620
• In the end
• (at closeout and disablement of the fund),
• all sources of Revenue must equal Total Expense.

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Grant Receivables(Object Code 1220)

• As payments are received from the sponsor, the
  Receivable decreases (a credit)
• As Revenue is recognized (a credit), the
  Receivable increases (a debit)
• Positive Receivable Expenditures gt Cash Received
• Negative Receivable Cash Received gt Expenditures

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Grant Receivables(Object Code 1220)

• LOC
• Letter of Credit funds have a zero receivable.
  The actual receivable resides in a special
  holding fund for all funds under the specific LOC.

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Special Object Codes(entered by Research
Services)

• PBIL - The Maximum Billable Award
• PBUD - Authorized Project Budget
• FSRD - The Total Direct Costs reported to the
  sponsor
• FSRI - The Total Indirect Costs reported to the
  sponsor

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More on PBIL

• PBIL
• Serves as the control and limits revenue
  recognition up to award amount
• Gets reduced to reported amount and guarantees
  that revenue recognition above reported amount
  does not occur
• Will always be rounded to nearest dollar. Cents
  will only show if there has been a carryover of
  funding from a previous fund (increase) or has
  been adjusted to the reported amount (decrease)

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More on PBUD

• PBUD
• Most often equal to PBIL except on advance
  accounts

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Operating Budget(Entered by Administrator)
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Unliquidated Obligations/Unobligated Balance

• Unliquidated Obligations
• Commitments of the budget period not yet paid
• When reported funding gets reserved in the next
  budget period so they can be paid
• Must liquidate within 90 days (A-110)
• Can not be reported in the final period
• Unobligated Balance
• unspent and uncommitted
• may be able to carryover automatically or with
  approval

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• Questions???